I’m a Bank Teller: 7 Money Lessons I’ve Learned From Other People’s Finances
Nothing puts you face to face with other people’s money — and their money mistakes — like being a bank teller. “I can’t tell you how many times I’ve seen someone come in, desperate to make a withdrawal because they’ve overspent,” said Rachael P., a seasoned bank teller.
Find Out: How Can You Withdraw Money From a Bank Account? 3 Ways To Know
Learn More: How To Get $340 Per Year in Cash Back on Gas and Other Things You Already Buy
Because of her job, she’s witnessed the consequences of poor budgeting firsthand. “It’s not about how much you make; it’s about how you manage what you have.” Here are the lessons she’s learned from watching other people make mistakes with their finances.
The Allure of Instant Gratification
“People love the idea of getting something now and worrying about the consequences later,” Rachael shared. “Trust me, that’s me too — but I’ve seen it tear apart people’s bank accounts.”
In today’s world of easy credit and buy-now-pay-later options, it’s incredibly easy to get drawn into shopping until you literally drop. Rachael shares that she’s seen customers dwindle their bank accounts down with purchases she considers nonessential — and she’s learned a lesson from it. “You don’t need half the things you think you need — what you actually need is money in your savings account.”
Read Next: How Much Does the Average Middle-Class Person Have in Savings?
The Importance of an Emergency Fund
“Life happens,” Rachael said. “I’ve seen people forced to drain their accounts because of an unexpected medical bill or car repair.” She’s witnessed firsthand how a single unforeseen event can upend someone’s financial stability if they lack a safety net. “Having an emergency fund can prevent those financial setbacks from becoming catastrophic.”
She shares that she will never be without an emergency fund based on what she’s seen. “It’s the single most important less I’ve learned, by far.”
The Burden of Debt
“I really hate seeing people in debt,” Rachael said. During her time as a bank teller, she’s witnessed the heavy toll that excessive debt can take — including with credit cards, student loans and mortgages with high interest rates.
Rachael strongly suggests prioritizing paying off debt — or better yet, living below your means and staying out of debt in the first place.
The Value of Financial Education
“So many people come to me with questions about investments, interest rates and retirement planning,” Rachael said. And that’s a good thing, because people who don’t ask questions are the ones who end up in trouble. “That lack of knowledge can lead to costly mistakes.”
Rachael thinks everyone should educate themselves on the ins and outs of their finances so they always know what’s going on. “Even if you don’t have a lot, it helps to know what to do with what you have.”
The Power of Compound Interest
“It’s amazing, and not surprising, how many people don’t understand the concept of compound interest,” Rachael shared. As someone who sees the power of compounding interest all the time, she understands how this fundamental principle can dramatically impact one’s financial trajectory.
“Compound interest is how the rich get rich and if you can figure that out sooner rather than later, maybe you can join them!” she said.
The Importance of Estate Planning
Rachael said that after watching customers go through the death of a loved one who didn’t estate plan, she sees why this process is so important. “You’d be surprised how many people neglect to plan for what happens to their assets after they’re gone.”
Because of this, Rachael has drafted her will and established a trust, even though she’s in her 30s. “It’s never too early.”
The Value of Professional Guidance
“Managing your finances is a lot, especially when it comes to things like investments and taxes,” Rachael said. “Most people would rather just not look — and that’s a problem.”
If you’re having trouble looking at your finances head on, Rachael suggests getting help. “Get help! There’s help! A little expert advice can go a long way,” she said.
Rachael works with a financial expert who operates out of her branch, but she said even if you don’t want to get help through your bank, you should get it somewhere. “Make sure it’s someone credentialed too — I’ve seen some scammers operating in this space.”
The Final Word
Rachel has seen it all as a bank teller and says she really just wants the best for her customers. “I have so many great regulars and I’ve learned so much from them.”
From their triumphs to their struggles, Rachael’s experienced much more than just handling physical cash. By following her advice — which happens to be the advice she also follows — you can help gain control of your finances.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: I’m a Bank Teller: 7 Money Lessons I’ve Learned From Other People’s Finances
